New data about MTN’s oversubscribed series 1 public offer last year shows the dominance of young Nigerian women.
When reading Nigeria’s capital market history, it is highly unlikely that one will ever come across a data summary depicting women at the top of an Initial Public Offering (IPO) investor list. While this is unfortunate, it is the painful outcome of a country steeped in unequal capital distribution with the accumulation of wealth among women falling far behind that of their male contemporaries.
But a new dawn is here and we absolutely love to see it.
A new data summary from MTN Nigeria’s communications office released yesterday reveals some really surprising but welcome changes in the investing culture in Nigeria. MTN Nigeria offered the public the opportunity to purchase 575 million shares in the company in December 2021, at a price of N169 per share. As seen in the communication, the series 1 offer - which also coincides with being Nigeria's first-ever public offer via a digital platform - was oversubscribed by 139.47 percent, resulting in the allocation of an additional 86.25 million shares.
More intriguing and exciting statistics reported include:
With Nigerian women, there’s massive a target market out there
The Covid-19 pandemic has accelerated female adoption of investments via digital platforms. Financial uncertainty and an inflationary environment in Nigeria largely buoyed by the pandemic pushed a lot of Nigerian women - and other Nigerians too - to search for hedges - from building emergency savings on automated savings platforms like PiggyVest and Cowrywise to updating financial plans and then the ensuing transitioning from saver to investor.
“People (in Nigeria) are doubling down on saving and investing,” – Odun Eweniyi, Co-founder PiggyVest
The recent trend of women adopting investing via digital platforms presents the investment industry in Nigeria with a significant opportunity. Female investors represent a new opportunity to earn new customers who have yet to establish loyalty to a single firm as more fintech platforms launch in an effort to make investing more accessible.
In a nascent retail investing market like Nigeria, gaining the trust and patronage of female investors is likely to be a money-making achievement for platforms that promote inclusivity.